St. Albert, Alberta--(Newsfile Corp. - November 8, 2024) - Enterprise Group, Inc. (TSX: E) (OTCQB: ETOLF) (the "Company" or "Enterprise"). Enterprise, a consolidator of energy services (including specialized equipment and services to the energy/resource sector), emphasizes technologies that mitigate, reduce, or eliminate CO2 and Green House Gas (GHG) and other harmful emissions for small local and Tier One resource clients, is pleased to announce its Q3 2024 results.
| Three months Sep 30, 2024 | Three ended Sep 30, 2023 | Nine months Sep 30, 2024 | Nine months Sep 30, 2023 | |||||
| Revenue | $6,801,309 | $8,433,369 | $26,834,878 | $23,901,556 | ||||
| Gross margin | $2,521,317 | 37% | $3,878,931 | 46% | $12,735,996 | 47% | $10,657,777 | 45% |
| Adjusted EBITDA(1) | $1,807,864 | 27% | $3,402,589 | 40% | $10,797,411 | 40% | $8,911,144 | 37% |
| Net income and comprehensive income | $(197,592) | $1,639,148 | $3,870,346 | $3,914,744 | ||||
| Income per share - Basic | $0.00 | $0.03 | $0.07 | $0.08 | ||||
| Income per share - Diluted | $0.00 | $0.03 | $0.06 | $0.08 | ||||
| (1) Identified and defined under "Non-IFRS Measures". | ||||||||
The first nine months of the year the Company saw stronger results and higher activity levels than in 2023. However, the third quarter saw a reduction in activity, for the first half of the year for two primary reasons. First was apprehension and preparation for a potentially severe forest fire season, leading some customers to delay the execution of planned projects to the end of the forest fire season. The second reason was some customers took advantage of the summer months to allow employees extended time off to prepare employees for the up coming demands of another year of busy field activity. This shift underscores a broader industry commitment to sustainable work practices and the long-term well-being of the workforce, which naturally led to the reduction in activity compared to the first half of the year. Even though the third quarter saw reduced activity, activity levels are higher than in 2023 and contributed to the Company's strong year to date results which included growth in revenue and adjusted EBITDA of 12% and 21% respectively. The increasing demand for natural gas power generation systems indicates a shift towards lower emission alternatives, and going forward, market conditions remain favourable for the energy sector, resulting in increased drilling, completion, and infrastructure projects. These factors are expected to continue for the remainder of 2024 and 2025.
Revenue for the three months ended September 30, 2024, was $6,801,309 compared to $8,433,369 in the prior period, a decrease of $1,632,060 or 24%. Gross margin for the three months ended September 30, 2024, was $2,521,317 compared to $3,878,931 in the prior period, a decrease of $1,632,060 or 35%. Adjusted EBITDA for the three months ended September 30, 2024, was $1,807,864 compared to $3,402,589 in the prior period, a decrease of $1,594,725 or 47%. Revenue for the nine months ended September 30, 2024, was $26,834,878 compared to $23,901,556 in the prior period, an increase of $2,933,322 or 12%. Gross margin for the nine months ended September 30, 2024, was $12,735,996 compared to $10,657,777 in the prior period, an increase of $2,078,219 or 19%. Adjusted EBITDA for the nine months ended September 30, 2024, was $10,797,411 compared to $8,911,144 in the prior period, an increase of $1,886,267 or 21%. Increases in revenue, gross margin and EBITDA for the year, are reflective of increased customer activity in 2024 while maintaining the operating efficiencies of the Company.
For the nine months ended September 30, 2024, the company generated cash flow from operations of $12,102,914 compared to $10,570,610 in the prior year. This change is consistent with the higher activity levels during the year and the growing demand for the natural gas power generation. The Company continues to utilize a combination of cash flow, debt and equity to right-size and modernize its equipment fleet to meet customer demands. During the nine months ended September 30, 2024, the Company acquired $13,452,761 of capital assets, primarily for natural gas power generation equipment and facilities, upgrading existing equipment, and meeting specific requests from customers. The Company continues to see its customers switching to natural gas as a cleaner and more efficient alternative to diesel, increasing the demand for natural gas generators and micro-grid packages.
On September 26, 2024, Enterprise announced a new five year exclusivity agreement with FlexEnergy Solutions, a globally recognized original equipment manufacturer of turbine and microturbine power generation equipment. The agreement positions Enterprise and it's wholly owned subsidiary Evolution Power Projects, Inc. as the sole provider of short-term turbine and microturbine applications across all commercial and industrial sectors in Alberta and British Columbia. The five-year agreement, underscores EPP's commitment to expanding its market presence and delivering state-of-the-art energy solutions in key Canadian markets. Under this agreement, EPP will exclusively supply cutting-edge, efficient turbine units for temporary power needs, reinforcing its leadership in the energy sector.
About Enterprise Group, Inc.
Enterprise Group, Inc is a consolidator of services-including specialized equipment rental to the energy/resource sector. The Company works with particular emphasis on systems and technologies that mitigate, reduce, or eliminate CO2 and Greenhouse Gas emissions for itself and its clients. The Company is well known to local Tier One and international resource companies with operations in Western Canada. More information is available at the Company's website www.enterprisegrp.ca. Corporate filings can be found on www.sedar.com. For questions or additional information, please contact:
For questions or additional information, please contact:
Leonard Jaroszuk, President & CEO, or
Desmond O'Kell, Senior Vice-President
780-418-4400
contact@enterprisegrp.ca
Forward-Looking Information
Certain statements contained in this news release constitute forward-looking information. These statements relate to future events or the Company's future performance. The use of any of the words "could", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. The Company's Annual Information Form and other documents filed with securities regulatory authorities (accessible through the SEDAR website www.sedar.com) describe the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference. The Company disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
Non-IFRS Measures
The Company uses International Financial Reporting Standards ("IFRS"). EBITDA is not a measure that has any standardized meaning prescribed by IFRS and is therefore referred to as a non-IFRS measure. This news release contains references to EBITDA. This non-IFRS measure used by the Company may not be comparable to a similar measure used by other companies. Management believes that in addition to net income, EBITDA is a useful supplemental measure as it provides an indication of the results generated by the Company's principal business activities prior to consideration of how those activities are financed or how the results are taxed. EBITDA is calculated as net income excluding depreciation, amortization, interest, taxes and stock based compensation.
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SOURCE: Enterprise Group Inc.
